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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25358
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I have split from my ex and we had bought a house together

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I have split from my ex and we had bought a house together although we were not married. I am the principle mortgagee for a mortgage which has approximately £74K remaining on it. The house is now valued at £125K. I have left the property and she has remained with a view to keeping it.
We have a personal arrangement where I borrowed £5K from her in order to setup a business. The business is a ltd company of which she owns a minority of B shares.
Just before splitting up we bought solar panels under a finance agreement which is in my name for the value of £6.3K. I am signed up to receive the FIT payments from this.
Over the past 18 months the majority of bills have been paid by me. We split it at approximately 2/3 for me and 1/3 for her. Total monthly bill amount for mortgage, dual fuel bill, water, council tax, TV licence in her name and cable TV/broadband package was approximately £750 of which I was paying £500 per month. In addition to this I have left some items in the house in order to try and ease the situation for her. This includes a TV system, washing machine and a coffee percolator. Original combined purchase value of approximately £1K.
Now we have split and I am trying to work out a fair arrangement to split the house and assets whilst also honoring our personal arrangement and dealing with the solar panels.
She has offered me to pay her £2.5K and relinquish any claim on the equity in the house when she remortgages to take my name off. The solar panels and relinquishing of company shares situation has still not been agreed.
I suspect this is not a particularly fair deal for me although would be willing to go along with it in order to settle the matter. I have done some research and think a deed of trust is an appropriate way forward. My main curiosity here is whether there is any other pertinent information I should be considering before going ahead and making any payments to her. Do these need to be recorded or should this agreement be put in writing and signed? Also, I wonder if this is the correct way to consider the assets and splitting them.
Any thoughts and help is greatly appreciated.
Kind regards,
Andy Forward
Submitted: 2 years ago.
Category: Law
Expert:  Joshua replied 2 years ago.
Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.

May I clarify please that there are no children involved here please?
When you purchased the property who put in what initial deposits?
Was any express declaration of trust or other agreement reached as to who would own what percentages of equity in the home?
Customer: replied 2 years ago.
Hi Joshua,
Thank you for your response so far. To answer your clarifications.
There are no children involved. Initially she put down a £30k deposit for the house and I put in nothing.
The initial purchase was a remortgage to buy out her previous ex. During that process we completed a transfer of equity and it was stated on that paperwork that I owned 5% of the property with a view to reviewing it when the fixed period was up.
We didn't complete any specific declarations to my knowledge the percentage values were incorporated into the generic mortgage paperwork we completed.
Expert:  Joshua replied 2 years ago.
Thank you. If you are a joint owner of the property the initial presumption is in law is that you are entitled to 50% of the equity. This can be shifted by by one of the parties if they can show evidence that it was not intended to make a gift of any of the equity where one party has put in more than the other. From what you say there is evidence here that this was the case and so she may be successful in shifting this presumption though the burden of proof is upon her to do so.From what you say though you are not seeking to lay a claim to 50% of the equity. The question is therefore what you may be entitled to. If you accept the starting proposition of 5% at day 1 then you can seek to claim credit for 1) and capital payments you have made to the mortgage (not interest); 2) any capital improvements you have made to the house including if you have given your own skilled time, credit for that. It is not normally possible to include any credit for outgoings such as utilities, tax and so on.Her offer appears to reflect the initial 5% stake you agreed at the outset and appears to take no account of monies you have contributed toward capital repayments on the mortgage nor if you have made them, improvements to the property. You may therefore wish to consider negotiating for a larger sum to reflect your contributions towards the property.You are able to nominate the FIT payments to her if you wish but obviously you would not want to do so without also addressing the finance agreement if you have purchased the cells on finance. It may be that the finance agreement would also need to be paid off by her as part of the remortgage and that she takes the FIT payments from you. THis would on the face of it seem to be the cleanest way to deal with the matter unless she can take over the finance agreement though of course funds may not permit this.The business loan is an entirely separate arrangement from the house but you could choose to link the two as part of your negotiations - as an example plucked from the air you could say you are not happy with her offer for your equity but on the basis the business loan is forgiven as part of the offer, you will accept he offer. I do not suggest this would be reasonable, it is merely an example. You will need to decide what is fair and reasonable based on the above guidance and the actual figures.Finally though the law does not provide that you can legitimately claim for outgoings you have spent on the property, as a matter of negotiation there is nothing preventing you doing so. If you cannot agree ultimately the only avenue open to her is to be stuck with the staus quo or apply to the court for an order that you buy her out, she buys you out or failing which the property is sold. Such a claim would cost upwards of £3000 and this is likely to be optimistic so there is likely to be some leeway open to you beyond what you can strictly demand legally should you wish to leverage it.However in general terms if it is possible, it is wise to attempt to resolve things amicably as you are doing but of course not at the expense of being taken advantage of.Any eventual agreement should be noted down in detail and ideally both signed. The agreement would ideally distil down to a single figure that you have agreed to accept for giving up your equity in the property. The solicitor involved in the remortgage will prepare a transfer deed which will include that figure and should include a declaration that you no longer have any claim to the equity in the property (though this is important for her rather than you). As long as the transfer deed has thecorrect figure in it before you sign that is what is key for you.I hope the above is of assistance? If you have no further questions for now I should be very grateful if you would kindly take a moment to click to rate my service to you today or just reply back to let me know if the above is helpful. Your feedback is important to me. If there is anything else I can help with please reply back to me I'd be very grateful
Joshua, Lawyer
Category: Law
Satisfied Customers: 25358
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
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